Money Laundering Enforcement Amendments of 1990

Summary

Money Laundering Enforcement Amendments of 1990 - Title I: Termination of Charters and Insurance - Amends the Revised Statutes, the Home Owners' Loan Act, and the Federal Credit Union Act to prescribe procedures for revoking the charters of national banks, savings associations, and credit unions convicted of certain money laundering or cash transaction reporting offenses. Amends the Federal Deposit Insurance Act and the Federal Credit Union Act to: (1) prescribe procedures for terminating the insured status of State depository institutions or credit unions convicted of certain money laundering or cash transaction reporting offenses; and (2) revise procedures for removing institution-affiliated parties and personnel involved in currency reporting violations. Amends Federal law to authorize access by State financial institution supervisors to currency transactions reports. Title II: Money Laundering Enforcement - Amends Federal law to direct the Secretary of the Treasury (the Secretary) to: (1) prescribe regulations requiring each depository institution to report to the Secretary certain non-bank financial institution customers for identification purposes; and (2) transmit such reports to appropriate State financial institution regulatory agencies. Authorizes a civil money penalty for violation of such reporting requirements. Amends Federal criminal law to prescribe seizure and forfeiture procedures (including imprisonment for parties involved in an illegal money transmitting business). Amends the Anti-Drug Abuse Act of 1988 to prohibit financial institutions and their employees from disclosing the existence of a special reporting order to any person except as prescribed by the Secretary. Amends the Federal Deposit Insurance Act to promulgate regulations requiring businesses that engaged in funds transfers to maintain (and make available to the Secretary upon request) records of payment orders (including international transactions). Amends the Right to Financial Privacy Act of 1978 to authorize a Federal agency to transfer financial records to the Secretary solely for criminal investigative or prosecutive purposes related to money laundering. Directs the Secretary to report to certain congressional committees the advantages and disadvantages of changing the size, denomination or color of U.S. currency for money laundering enforcement purposes. Requires the Attorney General to report to the Congress the extent to which compliance with money laundering statutes would be enhanced by issuing prosecutorial guidelines. Title III: Truth in Savings - Truth in Savings and Investments Act - Provides that any advertisement, announcement, or solicitation initiated by any depository institution or by any other entity may not include a reference to a specific rate of interest on any account other than the annual percentage yield. Defines "annual percentage yield" as the total amount of interest that would be received on a $100 deposit based on a specified method of compounding and crediting interest. Specifies that any advertisement, announcement, or solicitation containing a reference to such annual percentage yield must state clearly and conspicuously: (1) the period during which such annual percentage yield is in effect; (2) all minimum account balance and time requirements; (3) the minimum initial deposit required; (4) that regular fees or other conditions could reduce such yield; and (5) that a penalty shall be imposed for early withdrawal. Authorizes the Federal Reserve Board (Board) to exempt advertisements, announcements, or solicitations made by any broadcast or electronic medium, outdoor advertising display, or advertising display on the premises of the depository institution from the disclosure statements relating to regular fees or minimum deposit amounts if the Board finds that any such disclosure would be unnecessarily burdensome. Prohibits any depository institution from advertising an account as a free or no-cost account if: (1) there are minimum balance or limited transaction requirements to avoid fees; or (2) there is any service fee, transaction fee, or similar charge imposed for such account. Prohibits any institution from making any advertisement, announcement, or solicitation that is inaccurate or misleading or that misrepresents its deposit contracts. Requires each depository institution to maintain a schedule, written in clear and plain language, of fees, charges, interest rates, and terms and conditions such as minimum balance and time requirements applicable to each class of accounts offered. Requires that such schedule be disclosed to potential customers and requesting individuals and mailed to account holders. Requires depository institutions to notify current account holders of their right to request an account schedule containing terms, charges and interest rates if such account receives a statement on a quarterly or more frequent basis. Requires that account holders receive 30 days' advance notice of any change to be made in any term or condition required to be disclosed in the schedule if the change might reduce the yield or adversely affect any account holder. Directs the Board to require modified disclosure requirements concerning the annual yield on variable rate accounts, multiple rate accounts, guaranteed-rate accounts that mature in less than one year, and accounts for which the interest rate is not guaranteed. Requires a depository institution to provide each of its account holders a periodic statement containing clear and conspicuous disclosures of: (1) the average daily balance in the account; (2) the applicable periodic rate or rates; (3) the number of days during the period; (4) the amount of interest earned; and (5) any fees or charges imposed. Requires the use of the average daily balance method in the determination of an account balance for purposes of calculating interest. Exempts credit unions from such requirements under specified circumstances. Requires a depository institution to calculate the amount of interest on an interest-bearing account based on the full amount of principal in the account for the stated calculation period at the rates of interest disclosed pursuant to the requirements of this Act. Specifies that such requirement shall not be construed as prohibiting or requiring the use of any particular method of compounding or crediting of interest. Directs the Board to provide for public notice and comment on, and to publish, model forms and clauses for common disclosures required by this Act. Provides for the enforcement of this Act and the civil liability of a depository institution that fails to comply with requirements of this Act. Sets forth limitations on such liability and factors to be considered by the court in determining class action awards. Provides that an institution may not be held liable for a violation if the institution demonstrates that the violation was not intentional and resulted from a bona fide error, or if the institution makes a notification of and an adjustment for errors within a specified time. Establishes U.S. district court jurisdiction and a one-year statute of limitations for actions brought under this Act. Directs the National Credit Union Administration to provide for the similar regulation of credit unions. Amends the Investment Company Act of 1940 to require the Securities and Exchange Commission (SEC) to: (1) consult with the Federal Reserve Board to review specified regulations to determine whether they are providing consumers the ability to compare effectively savings and investment options; and (2) modify those regulations where necessary. Specifies that the provisions of this Act: (1) do not supersede disclosure requirements of State laws, except to the extent they are inconsistent with this Act; and (2) shall supersede any provisions of State laws relating to the determination of the balance on which interest is calculated. Amends the Expedited Funds Availability Act to authorize the Federal Reserve System to extend by one business day the time by which cash or government checks deposited in a depository institution must be made available for withdrawal if the receiving depository institution cannot reasonably make the funds available for withdrawal on the business day following the business day of deposit. Decreases from six to four business days the time by which certain deposits made at nonproprietary automated teller machines (ATM) must be made available for withdrawal. Extends from 1990 to 1994 the applicability of current deposit withdrawal guidelines at a nonproprietary ATM. Expands the scope of exceptions to next-day availability schedules to include certain government and depository institution checks. Authorizes the Board of Governors of the Federal Reserve System to allocate the risk of loss and liability in connection with the payment system among the States and their political subdivisions as well as depository institutions. Amends the Truth in Lending Act with respect to home equity loans disclosure requirements to include a statement of the margin that applies under the credit plan. Title IV: Counterfeit Deterrence Act of 1990 - Amends the Federal criminal code to: (1) specifically include electronic means for the acquisition, recording, retrieval, transmission, or reproduction of any obligations or other securities of the United States within the proscriptions against counterfeiting and forgery; (2) set penalties for the unauthorized possession of distinctive paper (defined to include any distinctive medium of which currency is made) or distinctive counterfeit deterrent (including any ink, water, seal, security thread, or other feature or device which the Secretary of the Treasury designates as being of value in preventing the counterfeiting of U.S. obligations or other securities). Prohibits the reproduction by electronic means of illustrations of obligations or other securities unless authorized by the Secretary of the Treasury. Title V: Coin Redesign - Amends Federal law regarding the minting of coins to mandate design changes to commemorate the 200th anniversary of the U.S. Constitution and specified constitutional concepts. Directs the Secretary to deposit any profits received from the sale of uncirculated and proof sets of coins into the general fund of the Treasury to reduce the national debt.

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4 official files

• Placed on Calendar Senate (text)

  Placed on Calendar Senate · EN

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• Engrossed in Senate (text)

  Engrossed in Senate · EN

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• Passed Senate amended

  summary · EN · 5 October 1990

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• Introduced in Senate

  summary · EN · 12 September 1990

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